Making time or even plucking up the courage to have a conversation about money and long-term goals can often be difficult, and most family units face serious challenges when it comes to dealing with money.
Numerous research studies have shown that finance is among the top reasons why couples argue. Disagreements occur over how to spend, how to save, invest, share bills etc. And it gets even more challenging when children are brought into the picture!
Most people are uncomfortable discussing their personal finances, even with their partners, yet it is one of the most crucial subjects for couples keen on staying together in relative peace and harmony. This is why family finance and planning for the future is so important.
There could be real advantages to making your wider family part of the process, if it’s not something you’re already doing.
By being involved in any financial discussions, you could well encourage the younger people in your family, like your children, to consider their own financial wellbeing and their financial future. Seeing the decisions you make could make children more engaged with money issues, provide them with important financial education, and set them on the path to greater financial freedom. It could also mean they consider things they may well have overlooked before, such as the need for budgeting, protection, or when to choose investments over savings.
You may know what your loved ones are hoping for, but do you know the details? Do you know how these things can be achieved? Helping children or even grandchildren buy a home is a prime example. With many of the younger generation struggling to find or save money for a deposit, financial help now could provide more security. Talking things through, and taking into account everyone’s hopes and ambitions, can help with everyone’s financial wellbeing, and lead to a clear understanding of how your money can have the greatest impact. It may also lead to a change in plans.
Here are six key family finance tips worth considering:
- Develop finance goals that are acceptable to you and your family
- Maintain 100% honesty on every financial issue
- Have a budget and follow it
- Consult each other when making ‘major’ purchases, as people often have different ideas on how money should be spent
- Set financial goals
- Regularly review your financial progress
Striking the right balance is important when involving family members in your financial plans.
A Lifetime coach will be able to discuss how you could consider any wider family goals and ambitions. They can provide a visual of exactly where you stand when it comes to your money, but just as importantly can give you a glimpse of what your financial future may look like, right up to your 100th birthday. Why not book a chat: https://outlook.office365.com/owa/calendar/[email protected]/bookings/
